China’s Central Economic Work Conference Highlights Priorities for Stable Growth and Risk Management in 2024
BEIJING, Dec. 11, 2023 /PRNewswire/ — The upcoming Central Economic Work Conference in China is set to shape the economic policymaking for the following year. Analysts predict that the conference will prioritize policies to consolidate the economic recovery, address major risks, and boost new emerging sectors for high-quality development.
Economic Recovery Trajectory
Despite external and internal risks and challenges, China’s economy is expected to continue its upward recovery trajectory. The strength and resilience of the Chinese economy, as well as ample policy tools at the disposal of policymakers, will enable effective management of downward pressure. As the world’s second-largest economy, China is anticipated to remain a key driver of global growth in 2024, amidst major downward risks in the global economy.
Setting the Tone
The closed-door Central Economic Work Conference is typically held in mid-December, preceded by a meeting of the Political Bureau of the Communist Party of China (CPC) Central Committee. The Political Bureau meeting provides insights into the conference’s priorities. Signals from the recent meeting suggest that policymakers will focus on consolidating the economic recovery, tackling risks, and promoting high-quality development in 2024.
Consolidating Economic Recovery
The meeting emphasized the importance of boosting economic vitality, mitigating risks, improving social expectations, and effectively enhancing the quality and growth of the Chinese economy within a reasonable range. Seeking progress while maintaining stability will remain the overall tone for next year. Policymakers will prioritize issues such as the real estate market, local government debt, and support for the private sector in addressing risks and challenges.
Stronger Policy Support
The meeting called for appropriately strengthening proactive fiscal policies in terms of quality and efficiency while maintaining flexible, appropriate, precise, and effective monetary policies. These commitments indicate the likelihood of increased fiscal and monetary policy support in 2024 to ensure continued economic recovery. Consumption will be a key focus, considering its significant contribution to economic growth in the first 11 months of 2023.
Boosting New Emerging Industries
To foster new growth engines and achieve high-quality development, the conference will prioritize the establishment of a new development paradigm. This entails promoting high-quality development, deepening reform and opening up, and strengthening self-reliance in high-level science and technology. The focus will be on fostering new growth models while phasing out outdated ones.
Positive Growth Projection for China
Despite various risks and challenges, analysts project that the Chinese economy will remain one of the fastest-growing among major economies and serve as the main driver for global growth. International organizations, including the International Monetary Fund (IMF), have revised their growth projections for China higher while downgrading global growth forecasts. The IMF expects China’s economy to achieve around 5 percent growth in 2023, with a revised growth projection of 4.6 percent for 2024.
China’s Central Economic Work Conference is anticipated to provide a comprehensive roadmap for stable growth and risk management in 2024, setting the course for economic policies and priorities.
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China’s top economic conference expected to prioritize stable growth, tackling risks in 2024